Santos Announces 82% Drop in First Half Profit

Santos on Friday announced first half profit of $37 million, a drop of 82 percent on year.

The company attributed the decline to “significantly lower oil prices and a higher exploration expense.”

Strong operational performance - particularly from PNG LNG and Darwin LNG – saw Santos record production growth of 13 percent compared with same period last year. However, the lower realised oil prices resulted in sales revenue declining by 15 percent. 

The average realised oil price was $60 per barrel for the period, compared with $115 in the previous first half – a 47 per cent reduction.

Santos Managing Director and Chief Executive Officer David Knox said that the company had responded both effectively and quickly to the lower oil price environment, delivering significant reductions in costs across the business and improving its productivity.

“Capital expenditure for the first half was 55% below 2014 levels and we cut the production costs per barrel by 11 percent to A$13.70 per barrel of oil equivalent,” Knox said.